New Jersey Gov. Mikie Sherrill has signed legislation that aims to prevent a growing number of unlicensed limo operators from operating in the state.
The legislation, A1552, targets the illegal chauffeur industry that relies on online bookings, unwitting customers and busy hubs like airports, sports complexes and entertainment venues.
“New Jersey’s limousine law penalties were low compared to the potential profits these illegal operations can rake in, so by raising the fines and consequences for violations, the state will deter some of these bad actors,” Assemblyman Michael Inganamort, R-Morris, said.
“Legitimate limo drivers must pass criminal background checks and purchase a $1.5 million insurance policy, but illegal operators are skirting these safety regulations while also bypassing wage and tax laws,” Inganamort added. “They are increasingly undermining professional limo services and endangering unwitting passengers and their drivers.”
The new law increases penalties for a third and subsequent violation of the following: operating a limo without a license issued by a municipality, permitting a driver to operate a limo without a valid license, carrying an insufficient insurance policy, exceeding the limo’s seating capacity, and failing to obtain special registration plates and properly inspect the limo. Violators could be subject to a $7,500 fine, a six-month driver’s license suspension, and vehicle impoundment.
The Chauffeured Transportation Association of New Jersey has documented several cases of unlicensed operators advertising on online platforms and providing for-hire transportation in New Jersey. Several unlicensed drivers believed they were adequately insured simply by increasing their personal policy limits, however most personal auto policies have a for-hire exclusion. The group found that passengers are being exposed to uninsured operators, while drivers face life-altering risks with no safety net.
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